China's Equities Plunge Most in a Month as Volatility Reignites

The Shanghai Composite Index sank 6.4 percent at the close, with about 70 stocks falling for each that rose. Industrial and technology companies led losses. The overnight money rate, a gauge of liquidity in the financial system, climbed the most since Feb. 6.

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Besides signs of tightening liquidity, analysts said stocks tumbled amid concern recent gains weren't justified by fundamentals and policymakers may introduce policies to restrain housing-price gains in some of the nation's largest cities. Losses accelerated in the afternoon after regulators banned Zhongrong Life Insurance Co. from adding to its equity investments.